web analytics

Coromandel mine claims rubbished

Written By: - Date published: 12:49 am, March 25th, 2010 - 16 comments
Categories: Conservation, Economy, Mining, poverty - Tags: ,

Denis Tegg is spokesperson for Coromandel Watchdog, the group that lead the fight against mining the last time it was the Right’s big new idea in the 1980s and early 1990s. It was Coromandel Watchdog’s efforts that principally led to the creation of Schedule 4 of the Conservation Act, which protects National Parks and some other DoC land from mining. He writes:

A mining lobbyist has produced grossly inflated back of the envelope figures for the “value” of New Zealand’s mineral resources. These have been used relentlessly by the Government and the media has quoted them almost unchallenged [this was written before TVOne got on to the job].

So I thought I would do some back of the envelope calculations myself.

Page 28 of the Government’s Discussion Paper Appendix 1 says that the value of potential resources mostly gold and silver on the Coromandel is $54 billion.

The next paragraph says mineral production from the open pit mine at Martha Hill Waihi is valued at $225 million per annum.

The average life of a modern mine is around 10 years so the value of total production per open pit mine would be $2.25 billion.

Let’s put aside for the moment that most of this “value” heads offshore.  Or that Newmont’s own Social Impact Report says mining town Waihi has high unemployment levels, double the rate of welfare dependency and lower wage levels than nearby towns of the same size.  Or that it score 10 out of 10 for “social deprivation” (10 is worst)

So how many open pit mines “worth” $2.25 billion do we need to have operating to achieve the potential $54 million of resources? The back of my envelope gives the answer.  24 open pit mines on the Coromandel!

Mr Brownlee won’t rule out open pit mining but under pressure in Parliament on 23 March John Key said he (note he not the Government) would rule out open cast mines on the Coromandel.

Let’s not be churlish about the total confusion and panic in the Government ranks. Let’s accept Key’s “on the hoof” assurances that there will not be any open pit mines.

Which means only underground mines are left to achieve the digging out of this incredible $54 billion potential.

The back of my envelope tells me that underground mines are about 1/20 of the size of an open pit mine. So we are going to need nearly 500 underground mines on the Coromandel, each operating for 10 years to achieve this stupendous $54 billion-dollar bonanza!

If you are looking for further evidence that the Government’s figures are wildly exaggerated its on page 23 of the discussion paper.

There it states that after 66 years of intense activity the Thames goldfield produced just $3.6 billion of gold at today’s prices.  Yet by some miracle, the Thames and another Coromandel gold prospects are going to lead us to economic nirvana in the next few years and we are going to achieve a $54 billion-dollar bonanza.

But wait there is more — Minerals Association lobbyist Doug Gordon says only one in 1000 prospects ever turn into a workable economic mine. So Gordon’s statements mean we have to divide the potential $54 billion by 1000 — giving a figure of only $54 million straight off the bat.

Denis Tegg

www.watchdog.org.nz

sign on for help with submissions at watchdog@pohtukawa.org.nz

16 comments on “Coromandel mine claims rubbished ”

  1. The average life of a modern mine is around 10 years so the value of total production per open pit mine would be $2.25 billion

    Actually, the NPV of the income stream, which is about $1.7 billion at a nominal 5% (note: the government uses 10% for all its internal accounting decisions), or $2.8 billion if we double the life of th emine to 20 years.

  2. Cnr Joe 2

    Theres gold in them there priceless habitats! Some.

  3. TightyRighty 3

    curse those M and B buttons being so close together. with all due respect to your obvious expertise on the issue, your conclusion is just plain wrong. you can not simplistically divide $54 billion by 1000 to state what you believe is the actual output. there are not 1000 open cast mines in auckland city where mining has occured in the past. nor on the west coast or in the coromandel. this is all about exploration, no one is digging yet. if digging occurs it will be at the location with the highest possible return, and hopefully the lowest possible impact on the surrounds. come back when the hysteria in you has died down, and maybe the rhetoric too, and present a more valid argument.

    • Bright Red 3.1

      “are not 1000 open cast mines in auckland city where mining has occured in the past. nor on the west coast or in the coromandel.”

      that’s because it’s one in a 1,000 prospects that come off, not one in a thousand mines.

      Unless you know beter than the Minerals Association, of course.

      • TightyRighty 3.1.1

        no, i don’t know better. my point was that one in a thousand prospects that come off does not automatically mean there is only 1/1000 of the estimated mineral wealth in any one spot. it’s simplistic conclusions like that that lend nothing of any value to the debate. if mineral wealth was spread that evenly i could have a hole in my backyard and be mortgage free. and ground floor apartments would be worth more than penthouses because you’d be able to build a pool and pay for it with the earth you pulled out.

        • Pascal's bookie 3.1.1.1

          A mining lobbyist has produced grossly inflated back of the envelope figures for the “value’ of New Zealand’s mineral resources. These have been used relentlessly by the Government and the media has quoted them almost unchallenged [this was written before TVOne got on to the job].

          So I thought I would do some back of the envelope calculations myself.

          The whole point of the post being that, you know, the numbers Brownlee has been throwing around are shit.

  4. Armchair Critic 4

    “present a more valid argument.”
    Something more like s4 lands are priceless, so arguing the economics of mining and therefore implying that mining could be acceptable at some price, is pointless.

  5. freedom 5

    the standard is being censored

    [lprent: No it isn’t. You’re just too impatient about a comment that went into the spam queue.

    Remember this site is run on a voluntary basis by people giving it time when they have some. One of my tasks is to rescue or approve items caught in the spam queue. Yesterday I went to work without my iPhone, which meant that I couldn’t tether to the internet, which meant that my abilities to admin the site were quite restricted.

    However I’m now starting to get interested in banning you because you’re getting irritating and wasting too much of my precious time. ]

    • freedom 5.1

      turns out the link i was trying to post is on the site’s spam filter’s list.
      Why is an internationally recognised academic site on a spam list?
      the link is now spaced so at least it can be seen
      a e 9 1 1 t r u t h . o r g
      the post is
      “no-one said it was going to be easy

      all we can do is point people to information, such as the fact that one of the most academic and heavily regulated information sites on 9/11 Truth last week presented a new legal challenge to the Official story and was signed by 1,000 members.

      A site that to be a member of, you must be a qualified Architect or an Engineer.
      read that again and let it soak in

      1,000 qualified Architects and Engineers challenging an Official declaration from their Government. A challenge based on questions of the physical events, nothing else. No Politics. No accusations, just the facts people, nothing but the facts. Why would they do that if the Truth was not in question?

  6. Stacktwo 6

    A few days before Brownlee and Key admitted the so-called hysterical claims of Forest & Bird et al were in fact accurate, the Herald reported ( http://www.nzherald.co.nz/environment/news/article.cfm?c_id=39&objectid=10632712)

    “Linda Willoughby of Newmont mining corporation, which operates in Waihi, said the company had no interest in Otahu or Parakawai at the moment.

    Nor did it have any plans to mine areas near Thames township that are at risk from flooding and storm damage. “They are totally off the radar,” she said.

    Peter Atkinson of mining company Heritage – the last mining company that was interested in mining in protected areas of the Coromandel before they were placed off limits in the 1990s – was not interested in anything north of the Kopu-Hikuai Rd, the so-called “green line” marking the beginning of protected Schedule 4 land.

    “I don’t know of anyone who is even looking at it,” he said. “As for national parks, dream on,” he said.”

    I wonder how much of the tottering edifice the government is erecting is founded on the speculation of the starry-eyed Richard Baker and the desperation of our clueless leaders?

  7. Lanthanide 7

    Yes, this “lets take the number and divide it by 1000” is quite frankly, stupid and shows ignorance of the situation.

    You realise that when they say “lets go mine in the Corromandal because there’s lots of gold there”, they have effectively already cut out 990 of the bad prospects?

    • Bright Red 7.1

      Lanthanide. The 1 in 1000 comes from the Minerals Association.

      • TightyRighty 7.1.1

        so, didn’t you read my bit about mining where it will have the most value and least impact. you know, one of those cost/benefit thingymabobies?

      • TightyRighty 7.1.2

        Lanthanide – if the figure was one prospect in 50 billion, they could be mining for you

  8. Jim Nald 8

    Will this be like a Saruman cometh to Fangorn Forest?
    Can someone tell Sauron to stop it please!

Links to post

Recent Comments

Recent Posts

  • Government receives Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mos...
    Minister for Internal Affairs Jan Tinetti has today received the Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mosques, and will table it in Parliament on Tuesday December 8. “I know this will have been a challenging process for whānau, survivors and witnesses of the terrorist attack ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • New Zealand Government to declare a climate emergency
    The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today.                                       “We are in the midst of a climate crisis that will impact on nearly every ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Call for urgent action on Pacific conservation
    A declaration on the urgency of the global biodiversity crisis and the need for immediate, transformative action in the Pacific was agreed at a pan-Pacific conference today. The 10th Pacific Islands Conference on Nature Conservation and Protected Areas is taking place this week across the Pacific.  Minister of Conservation Kiritapu ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • Speech from the throne
    E aku hoa i te ara o te whai, Kia kotahi tā tātou takahi i te kō, ko tōku whiwhi kei tō koutou tautoko mai. Ko tāku ki a koutou, hei whakapiki manawa mōku. He horomata rangatira te mahi, e rite ai te whiwhinga a te ringatuku, me te ringakape ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Keynote address to Chartered Accountants Australia and New Zealand conference
    Speech to the CAANZ conference - November 19, 2020 Thank you, Greg, (Greg Haddon, MC) for the welcome. I’d like to acknowledge John Cuthbertson from CAANZ, the Commissioner of Inland Revenue Naomi Ferguson, former fellow MP and former Minister of Revenue, Peter Dunne, other guest speakers and CAANZ members. I ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Expert independent advisory group appointed to strengthen the future of Māori broadcasting
    A panel of seven experts are adding their support to help shape the future of Māori broadcasting, Minister for Māori Development Willie Jackson has announced today. “Today I will meet with some of the most experienced Māori broadcasters, commentators and practitioners in the field. They have practical insights on the ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to review housing settings
    New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus is on improving access to the housing market for first home buyers and ensuring house price growth ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Crown accounts reflect Govt’s careful economic management
    The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance before gains and losses, or OBEGAL, was in deficit. However that ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Community launch marks next step in addressing racism in education
    The launch of Te Hurihanganui in Porirua today is another important milestone in the work needed to address racism in the education system and improve outcomes for Māori learners and their whānau, Associate Education Minister Kelvin Davis says. Budget 2019 included $42 million over three years to put Te Hurihanganui ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government to consider recommendations on DNA use in criminal investigations
    The Minister of Justice has received the Law Commission’s recommending changes to the law governing the way DNA is used in criminal investigations. The report, called The Use of DNA in Criminal Investigations – Te Whahamahi I te Ira Tangata I ngā Mātai Taihara, recommends new legislation to address how ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to Wakatū Nelson regional hui on trade
    First, I want to express my thanks to Te Taumata for this hui and for all the fantastic work you are doing for Māori in the trade space. In the short time that you’ve been operating you’ve already contributed an enormous amount to the conversation, and developed impressive networks.  I ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to Primary Industries Summit
    Thank you for the opportunity to speak to you today about the significant contribution the food and fibres sector makes to New Zealand and how this Government is supporting that effort. I’d like to start by acknowledging our co-Chairs, Terry Copeland and Mavis Mullins, my colleague, Agriculture Minister Damien O’Connor, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Fast track referrals will speed up recovery and boost jobs and home building
    The Government is taking action to increase jobs, speed up the economic recovery and build houses by putting three more projects through its fast track approval process. “It’s great to see that the fast-track consenting process is working. Today we have referred a mix of potential projects that, if approved, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Papakāinga provides critically needed homes in Hastings
    A papakāinga opened today by the Minister for Māori Development the Hon Willie Jackson will provide whānau with much needed affordable rental homes in Hastings. The four home papakāinga in Waiōhiki is the first project to be completed under the ‘Hastings Place Based’ initiative. This initiative is a Government, Hastings ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand ready to host APEC virtually
    Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While this isn’t an in-person meeting, it will be one ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Revival of Māori Horticulturists
    The rapid revival of Māori horticulture was unmistakeable at this year’s Ahuwhenua Trophy Awards, with 2020 marking the first time this iconic Māori farming event was dedicated to horticulture enterprises. Congratulating finalists at the Awards, Māori Development Minister Willie Jackson said growing large-scale māra kai is part of Māori DNA. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Emergency benefit to help temporary visa holders
    From 1 December, people on temporary work, student or visitor visas who can’t return home and or support themselves may get an Emergency Benefit from the Ministry of Social Development, Social Development and Employment Minister Carmel Sepuloni announced today. Previously, temporary visa holders in hardship because of COVID-19 have had ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • School sustainability projects to help boost regional economies
    Forty one schools from the Far North to Southland will receive funding for projects that will reduce schools’ emissions and save them money, Education Minister Chris Hipkins announced today. This is the second round of the Sustainability Contestable Fund, and work will begin immediately. The first round announced in April ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Farmer-led projects to improve water health in Canterbury and Otago
    More than $6 million will be spent on helping farmers improve the health of rivers, wetlands, and habitat biodiversity in Canterbury and Otago, as well as improving long-term land management practices, says Agriculture Minister Damien O’Connor. Four farmer-led catchment group Jobs for Nature projects have between allocated between $176,000 and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Tupu Aotearoa continues expansion to Pacific communities in Nelson, Marlborough, Tasman & Northl...
    Pacific communities in Nelson, Marlborough, Tasman and Northland will benefit from the expansion of the Tupu Aotearoa programme announced today by the Minister for Pacific Peoples, Aupito William Sio. The programme provides sustainable employment and education pathways and will be delivered in partnership with three providers in Northland and two ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • New primary school and classrooms for 1,200 students in South Island
    Education Minister Chris Hipkins unveiled major school building projects across the South Island during a visit to Waimea College in Nelson today. It’s part of the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “Investments like this gives the construction industry certainty ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Minister of Māori Development pays tribute to Rudy Taylor
      Today the Minister of Māori Development, alongside other Government Ministers and MP’s said their final farewells to Nga Puhi Leader Rudy Taylor.  “Rudy dedicated his life to the betterment of Māori, and his strong approach was always from the ground up, grassroots, sincere and unfaltering”  “Over the past few ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Prime Minister to attend APEC Leaders’ Summit
    Prime Minister Jacinda Ardern will attend the annual APEC Economic Leaders’ Meeting and associated events virtually today and tomorrow. “In a world where we cannot travel due to COVID-19, continuing close collaboration with our regional partners is key to accelerating New Zealand’s economic recovery,” Jacinda Ardern said. “There is wide ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Infrastructure NZ Symposium
    Tena Koutou, Tena Koutou and thank you for inviting me to speak to you today. This is a critical time for New Zealand as we respond to the damage wreaked by the global COVID-19 pandemic. It is vital that investment in our economic recovery is well thought through, and makes ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pike River 10 Year Anniversary Commemorative Service
    Tēnei te mihi ki a tātau katoa e huihui nei i tēnei rā Ki a koutou ngā whānau o te hunga kua riro i kōnei – he mihi aroha ki a koutou Ki te hapori whānui – tēnā koutou Ki ngā tāngata whenua – tēnā koutou Ki ngā mate, e ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Huge investment in new and upgraded classrooms to boost construction jobs
    Around 7,500 students are set to benefit from the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “The election delivered a clear mandate to accelerate our economic recovery and build back better. That’s why we are prioritising construction projects in schools so more ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Keeping Pike River Mine promises 10 years on
    Ten years after the Pike River Mine tragedy in which 29 men lost their lives while at work, a commemorative service at Parliament has honoured them and their legacy of ensuring all New Zealand workplaces are safe. Prime Minister Jacinda Ardern attended the event, along with representatives of the Pike ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Additional testing to strengthen border and increase safety of workers
    New testing measures are being put in place to increase the safety of border workers and further strengthen New Zealand’s barriers against COVID-19, COVID-19 Response Minister Chris Hipkins said today. “These strengthened rules – to apply to all international airports and ports – build on the mandatory testing orders we’ve ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More public housing delivered in Auckland
    The Government’s investment in public housing is delivering more warm, dry homes with today’s official opening of 82 new apartments in New Lynn by the Housing Minister Megan Woods. The Thom Street development replaces 16 houses built in the 1940s, with brand new fit-for-purpose public housing that is in high ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Agreement advanced to purchase up to 5 million COVID-19 vaccines
    The Government has confirmed an in-principle agreement to purchase up to 5 million COVID-19 vaccines – enough for 5 million people – from Janssen Pharmaceutica, subject to the vaccine successfully completing clinical trials and passing regulatory approvals in New Zealand, says Research, Science and Innovation Minister Megan Woods. “This agreement ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Jobs for Nature funding will leave a conservation legacy for Waikanae awa
    Ninety-two jobs will be created to help environmental restoration in the Waikanae River catchment through $8.5 million of Jobs for Nature funding, Conservation Minister Kiritapu Allan announced today. “The new funding will give a four-year boost to the restoration of the Waikanae awa, and is specifically focussed on restoration through ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Dunedin Hospital project progresses to next stage
    As the new Dunedin Hospital project progresses, the Government is changing the oversight group to provide more technical input, ensure continued local representation, and to make sure lessons learnt from Dunedin benefit other health infrastructure projects around the country. Concept design approval and the release of a tender for early ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Jump in apprentice and trainee numbers
    The number of New Zealanders taking up apprenticeships has increased nearly 50 percent, and the number of female apprentices has more than doubled. This comes as a Government campaign to raise the profile of vocational education and training (VET) begins. Prime Minister Jacinda Ardern and Education Minister Chris Hipkins announced ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • ReBuilding Nations Symposium 2020 (Infrastructure NZ Conference opening session)
    Tena koutou katoa and thank you for the opportunity to be with you today. Can I acknowledge Ngarimu Blair, Ngati Whatua, and Mayor Phil Goff for the welcome. Before I start with my substantive comments, I do want to acknowledge the hard work it has taken by everyone to ensure ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand's biosecurity champions honoured
    Biosecurity Minister Damien O’Connor has paid tribute to the winners of the 2020 New Zealand Biosecurity Awards. “These are the people and organisations who go above and beyond to protect Aotearoa from pests and disease to ensure our unique way of life is sustained for future generations,” Damien O’Connor says. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Tourism Industry Aotearoa Conference
    speech to Tourism Industry Aotearoa annual summit Te Papa,  Wellington Introduction Nau mai, haere mai Tēnā koutou, tēnā koutou, Ka nui te mihi, ki a koutou. Thank you Tourism Industry Aotearoa for hosting today’s Summit. In particular, my acknowledgements to TIA Chair Gráinne Troute and Chief Executive Chris Roberts. You ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supermarkets announced as Government’s second market study
    The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries.   “Supermarkets are an integral part of our communities and economy, so it’s important to ensure that Kiwis are getting a fair deal at the checkout,” Minister of Commerce and Consumer ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Masks to be worn on Auckland public transport and all domestic flights
    Masks will need to be worn on all public transport in Auckland and in and out of Auckland and on domestic flights throughout the country from this Thursday, Minister for COVID-19 Response Chris Hipkins said today. “I will be issuing an Order under the COVID-19 Response Act requiring the wearing ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand signs Regional Comprehensive Economic Partnership
    Increase to New Zealand’s GDP by around $2 billion each year Increase opportunities for NZ exporters to access regional markets Cuts red tape and offers one set of trade rules across the Asia Pacific region New government procurement, competition policy and electronic commerce offers NZ exporters increased business opportunities Prime ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Minister acknowledges students as exams begin
    Education Minister Chris Hipkins has recognised the extraordinary challenges students have faced this year, ahead of NCEA and New Zealand Scholarship exams which begin on Monday. “I want to congratulate students for their hard work during a year of unprecedented disruption, and I wish students all the best as ...
    BeehiveBy beehive.govt.nz
    2 weeks ago